New Zealand Farming Systems Uruguay is forecasting a full year gross earnings loss following dry weather conditions in Uruguay.
The company, which is 85% owned by Olam International of Singapore, is estimating an operating earnings loss of between $US3 - $US5 million.
In February, the farm development company said it expected to break even.
Chief executive David Beca says that while milk production has increased significantly, the pace of growth has been curbed by a dry summer and autumn.
Delays were also experienced in completing eight new dairy farms.
The company says if changes in the value of its livestock are included, NZFS expects gross earnings to break even.